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TMI BlogJob WorkX X X X Extracts X X X X X X X X Extracts X X X X ..... ation which is essential for aforesaid process and the expression job worker shall be construed accordingly. The meaning of Job Work is very wide and includes the followings: 1 Processing or working upon goods partly 2 Processing or working upon goods wholly 3 Any operation which is essential for the above. However, this definition does not include the job work in relation to Capital Goods and the scope of work included in the rule 4(5) of the Rules. The scope of Job Work for the purpose of Rule 4(5) is very wide than defined as above. 2 Scope of Job Work for the purpose of Rule 4(5) i.e. removal of goods for job work: [commonly this provision is known as 57F(4) - an old rule] Input and Capital Go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. In case job work is not completed within in 180 days / 2 years , It is advisable to bring back the material and send it again for job work. It is mandatory requirement. If goods are returned back after 180 days / 2 years and Cenvat Credit has been reversed as above, it is allowed to take the credit again on its own. For this purpose no need to obtain permission form the department, but proper records must be kept. Special provision for Jigs, fixtures, moulds and dies The CENVAT credit shall also be allowed in respect of jigs, fixtures, moulds and dies sent by a manufacturer of final products to another manufacturer for the production of goods or a job worker for the production of goods on his behalf and accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l goods. Thus capital goods have to be brought into the factory or manufactured in the factory and then despatched to job worker. 3 Sending material from one job worker to another job worker There is no specific permission or prohibition in the Cenvat Credit rules covering the aspect that one job worker can send the goods to another job worker. Considering the prevailing market practice and specific inclusion in the old rules, it is allowed and job worker can send the goods to another job worker. In such circumstances, it is highly advisable that the job worker must maintain own records and challans in support of his activities. 4 Own material used by the job worker It is very interesting and complex issue. It can be disc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , MUMBAI 5 Direct selling of finished goods from the premises of Job Worker The manufacturer who has sent the material / inputs has to obtain permission from the AC / DC for selling the finished goods directly from the premises of the Job Worker. Before granting such permission, AC / DC may impose conditions in the interest of revenue including the manner in which duty, if leviable, is to be paid. The permission is valid the financial year for which it has been obtained. 6 Scrap / waste generated at the end of job worker Scrap / waste generated at the end of job worker or say during the process of job work, must be returned back to the supplier of material for job work. If the manufacturer / raw material supplier does n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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